Leverage NetSuite’s Multi-Book Accounting solution and conveniently comply with various sets of financial books, concurrently, and produce financial statements that are in line with the necessary accounting standards.
Because of industry-specific standards, national rules, or both, the same business event may require different accounting treatments; therefore, this results in discrepancies in reporting outcomes. A smart, automated accounting solution is necessary for reporting financial outcomes, while also adhering to different accounting standards.
One industry-leading solution for accounting automation is NetSuite Multi-Book Accounting. It is a solution designed to save organizations countless hours that go into manual compiling of reports and maintenance, leading to error-prone results and poor performance.
Why is it Important for Companies to Use Oracle NetSuite Multi-Book Accounting?
NetSuite Multi-Book Accounting is an automated accounting rule-driven engine that eliminates data entry replication and reduces the need for error-prone manual adjustments. It allows accounting departments to create business transactions while automatically, accurately, and efficiently posting the records to all books, abiding by the appropriate accounting standards.
NetSuite Multi-Book Accounting is a comprehensive accounting solution for businesses that:
- Operates through subsidiaries
- Works with vendors in varying currencies
- Has different financial reporting for GAAP vs. local
- Has any other complicated reporting needs
- Requires maintaining a variety of accounting records within a single set of financial transactions
- Needs real-time granular details at varying levels of accounting
How does NetSuite Multi-Book Accounting work?
The following steps explain how to get started and use NetSuite Multi-Book Accounting:
- Once the Multi-Book Accounting NetSuite solution has been provisioned, it is enabled in NetSuite as a feature via the “Enable Features” menu under the “Accounting” tab.
- Once enabled, a company’s original subsidiary structure and setup become the primary book.
- In addition to the primary book, up to four active secondary books (five books altogether) can be maintained.
- Multi-book allows a mainstream user to transact with an effect on both primary and secondary books at one time (book generic transactions).
- It allows a user with appropriate rights to create a transaction that is specific to a single book (book-specific transactions).
- Book generic transactions will post with the same results to the primary and secondary books, while accounting for any currency exchange rates.
- In addition to setting up book-specific transactions, Multi-Book Accounting NetSuite can setup various book-specific items, charts of accounts, and processes such as revenue recognition, expense amortization, monthly closing, and intercompany eliminating journal entries.
- Users with the appropriate rights can view the General Ledger (GL) effect on each book for entries that are made to both books at once (book generic entries).
- Differences between books can include currency, account, revenue recognition rule, and/or depreciation rule.
What Are the Business Benefits of NetSuite Multi-Book Accounting
From managing foreign exchange, thorough reporting, and analysis to customization, there is a plethora of functionality included in NetSuite Multi-Book. For instance, in accordance with ASC 830, SFAS 52, and other regulatory standards, it may automatically assess the impact of exchange rates, including realized and unrealized foreign currency gains/losses. With the help of these features, organizations can increase their productivity and get advantages that significantly contribute to long-term value creation.
- Deliver different financial reports to serve different purposes.
- Provide detailed transaction-based reports for each accounting book.
- Automate posting to multiple accounting books according to pre-defined accounting rules.
- Create different revenue recognition and expense amortization rules for different accounting books.
- Adjust financial results on a per-book basis.
- Manual journal entries, including intercompany journal entries, can be posted for individual accounting books.
- Close and then reopen accounting periods associated with any accounting book.
- Process and modify the accounting result of one book without impacting other books.
- Ensure data integrity across multiple accounting books.
- The system automatically maintains data synchronization for parallel transactions in different accounting books to ensure data integrity.
- Enable customization to leverage the multi-book accounting context.
- Run financial consolidation on a per-book basis.
Jade as an Oracle NetSuite ERP Implementation Partner
Jade is a strongly tied NetSuite Systems Integrator partner delivering functional and technical implementations, optimization services, and managed services. We combine our in-depth NetSuite knowledge with our broad domain expertise to provide the best value for our customers during implementation and beyond.
If you are interested in our NetSuite ERP Services and want a demo of how NetSuite Multi-Book Accounting can help your business, please visit: netsuite erp implementation or connect with our experts here.